ART. 2. nor shall it prevent him from granting or devising such lands, subject to the execution of the trust. Every such grantee or devisee N. Y., 576; shall have a legal estate in the lands, as against all persons, except 336; 25 the trustees and those lawfully claiming under them. 31 Barb., Barb., 395; 4 E. D. Smith, 134; 4 Hun, 286; 70 N. Y., 141; 70 N. Y., 81; 99 N. Y., 279. § 62. Where an express trust is created, every estate and interest Interests remaining not embraced in the trust and not otherwise disposed of, shall remain in grantor in, or revert to, the person creating the trust, or his heirs, as a legal estate. of express trust. 21 N. Y., 576; 46 N. Y., 169; 53 N. Y., 351; 56 Barb., 608; 4 T. & C., 48; 106 N. Y., 47. Powers of party in § 63. No person beneficially interested in a trust for the receipt po(730) of the rents and profits of lands, can assign or in any manner dis- over trust, pose of such interest; but the rights and interest of every person terested. for whose benefit a trust for the payment of a sum in gross is created, are assignable. 19 N. Y., 455; 12 N. Y., 491; 6 N. Y., 578; 31 Barb., 336; 26 Barb., 453; 7 Barb., 235; 5 omitting § 64. Where an express trust is created, but is not contained or Effect of declared in the conveyance to the trustees, such conveyance shall be trust in deemed absolute, as against the subsequent creditors of the trustees, an not having notice of the trust, and as against purchasers from such 29 Barb., trustees, without notice, and for a valuable consideration. ance 484; 22 Barb., 97. sales, etc., by trustees, 24 N. Y., 9, void. 281; 48 N. any Y444; 20 18 N. Y N. Y., 21; or a 107; 12 N. Y, 394; 6 N. Y., 360; 31 Barb., 336; 36 N. Barb., 605, Y., 581; 56 30 Barb., Barb., 404; § 65. Where the trust shall be expressed in the instrument creat- Certain ing the estate, every sale, conveyance or other act of the trustees, in contravention of the trust, shall be absolutely void; provided, however, that the supreme court shall have power, upon such terms 2244 and conditions as to the court shall seem just and proper, in case to authorize any such trustee to mortgage or sell any such real estate whenever it shall appear to the satisfaction of said court, judge thereof, that it is for the best interest of said estate so to do, and that it is necessary, and for the benefit of the estate, to raise by mortgage thereon, or by a sale thereof, funds for the purpose of preserving or improving such estate. No order directing such trustee 321; 20 to mortgage or sell said lands shall be granted, unless it shall ap- 7 How. Pr. pear to the satisfaction of such court or judge that a notice in writ- R., 4938. ing, stating the time and place of making the application therefor, has been served upon the beneficiary or beneficiaries of said trust, at least eight days before making such application, if said beneficiary or beneficiaries are within this state and adult. In case said beneficiary or beneficiaries are infants, lunatics, persons of unsound mind, habitual drunkards or absentees, said court or judge shall not direct 27 N. Y the trustees to mortgage or sell said lands until such beneficiary or Y., 257. beneficiaries are brought into court by such notice as said court or judge may prescribe. [Thus amended by L. 1886, ch. 257; superseding L. 1882, ch. 275, and L. 1884, ch. 26.] Barb., 473, 480; 1 Bosw., 143; 80 N. Y., 15; 32 Hun, 189 28 Hun, 573; 1 Hun, 16, 37 Hun, 23; 54978; 92 N. 446; 101 N. to be affect § 66. No person who shall actually and in good faith pay a sum Others not of money to a trustee, which the trustee as such is authorised to re- ed by misceive, shall be responsible for the proper application of such money, trustees. conduct of TITLE 2. 10 Paige, 282; 12 N. Y., 403; 30 Barb., 133; 22 Barb., 99; 7 Johns. When estate of trustee to cease. 35 N. Y., Barb., 76; 49 Barb., 131; 7 according to the trust; nor shall any right or title, derived by him from such trustee, in consideration of such payment, be impeached or called in question, in consequence of any misapplication by the trustee, of the monies paid. Ch. R., 150; 16 How. Pr. R., 357; 7 Lans., 98; 29 Hun, 195, 198. § 67. When the purposes for which an express trust shall have been created shall have ceased, the estate of the trustees shall also cease, and where an estate has been conveyed to trustees for the 475; 4 Hun, benefit of creditors and no different limitation is contained in the 286; 54 instrument creating the trust, such trust shall be deemed discharged at the end of twenty-five years from the creation of the same; and the estate conveyed to trustee or trustees and not granted or conveyed by him or them shall revert to the grantor or grantors, his or 5 Paige,458; their heirs or devisees, or persons claiming under them, to the same effect as though such trust had not been created. [Thus amended by L. 1875, ch. 545.] Bosw., 241; 70 N. Y., 81 11 Hun, 127; 2 Robt.,133; 2 Sandf. Ch., 296; 9. Barb., 516; 34 N. Y.,555; Trust es tate not to descend, etc. Trust to vest in chancery. 44 N. Y., 257; 60 Barb., 13; 15 Abb. N. C., 123; 27 Hun, 155; 37 Hun, 22; 103 N. Y., 655. § 68. Upon the death of the surviving trustee of an express trust, the trust estate shall not descend to his heirs, nor pass to his personal representatives; but the trust, if then unexecuted, shall vest in the court of chancery, with all the powers and duties of the original trustee, and shall be executed by some person appointed for that purpose, under the direction of the court. 59 Barb.,78; 3 Robt., 525; 1 Redf., 282; 2 Abb. Ct. App. Dec., 27; 51 N. Y., 647; 2 Hun, 95; 27 Barb., 407; 9Barb., 638, 7 Paige, 107; 5 Paige, 560; 47 Barb., 613; 38 Barb., 473; 11 Hun, 127; 39 Hun, 352; 40 Hun, 507; 3 Dem., 565; 5 Redf., 1; 88 N. Y., 174; 99 N. Y., 117. When and how trustee may resign. 19 N. Y., 455; 25 Barb., 99; 1 Barb. § 69. Upon the petition of any trustee, the court of chancery may accept his resignation, and discharge him from the trust, under such regulations as shall be established by the court for that purpose, and upon such terms, as the rights and interests of the persons interested in the execution of the trust may require. Ch., 568; 3 Paige, 420; 3 Robt., 558; 1 Redf., 282; 24 Hun, 153; 89 N. Y., 136, 144; 96 N. Y., 327. When and how trustee moved. § 70. Upon the petition or bill of any person interested in the execution of a trust, and under such regulations as for that purpose may be re- shall be established, the court of chancery may remove any trustee who shall have violated or threatened to violate his trust, or who 2 Abb. Pr. shall be insolvent, or whose insolvency shall be apprehended, or who, for any other cause, shall be deemed an unsuitable person to execute the trust. 1 Redf.,282; R., N.S., 15; 41 N. Y., 121; 9 N.Y., 176; 2 Barb., 447; 1 E. D. Smith, 572; 34 N. Y., 340; 45 Barb., 337; 65 Barb., 250; 3 Dem., 27. How place supplied. § 71. The chancellor shall have full power to appoint a new trustee, in place of a trustee resigned or removed; and when, in consequence of such resignation or removal, there shall be no acting trustee, the court, in its discretion, may appoint new trustees, or 3 Robt.,559; Cause the trust to be executed by one of its officers, under its direc2 Redf., 282; tion. [731] 41 Barb., 121; 65 Barb., 259; 25 Barb..99; 1 Barb. Ch., 568; 5 Paige, 47, 560; 11 Abb. Pr., 472; 31 How. Pr. R., 78; 89 N. Y., 136, 144; 98 N. Y., 39. Applica tion of three last sections. § 72. The three last sections shall extend only to cases of express trusts. 41 N. Y., 121; 65 Barb., 250; 2 Abb., N. S., 15; 28 Hun, 64. [Supplementary Article.] ARTICLE 2A. ACTS RELATING TO TRUSTS OF REAL AND PERSONAL PROPERTY. L. 1839, Chap. 174 - An act in relation to certain trusts. Certain deeds of trust for any Shaker society valid; estates may be continued. SECTION 1. All deeds of trust in relation to real and personal estate executed and delivered prior to the first day of January, eighteen hundred and thirty, to any persons in trusts for any united society of the people commonly called Shakers, shall be valid and effectual to vest in the trustees the legal estates and interests purported to be conveyed by such deeds, to and for the uses and purposes declared therein, or declared by any declaration of trusts executed by such trustees in the same manner and to the same effect as before the first day of January, eighteen hundred and thirty and such legal estate and trusts, and all the legal authority with which the original trustees were vested by virtue of their appointment and conferred powers, shall forever descend in regular succession to their successors in office and trust, who in conformity to the constitution of said society have been duly chosen and appointed. [Thus amended by L. 1849, ch. 373.] 27 Barb., 386; 17 Barb., 105. Such trusts may be created hereafter; limitation of value of property. § 2. Trusts of real and personal estate for the benefit of any united society of the people called Shakers, may hereafter be created for the use of the members of any such society according to the religious constitution of such society; and the legal estates of any property so held in trust shall be vested in the trustees and in those to whom such property may be transmitted in trust by the appointment of any such society, so long as may be required for the objects and purposes of such trusts. But no society shall become beneficially interested in any real or personal property, or acquire any equitable right or interest in any such property, either directly or indirectly, the annual value or income of which after deducting necessary expenses, shall exceed twenty-five thousand dollars, on pain of forfeiture of the privileges conferred by this act: nor shall any trustee be a trustee of more than one such society at the same time. [Thus amended by L. 1852, ch. 203.] Meaning of "society." § 3. The word "society," for the purposes of the preceding section, shall be construed and understood to mean and include all persons of the religious belief of the people called Shakers, resident within the same county. Right to repeal. § 4. The legislature may at any time alter, modify or repeal this act. L. 1839, Chap. 184 An act in relation to trusts for the benefit of the meetings of the religious society of Friends. Former trusts for Friends, valid. SECTION 1. All deeds or declarations of trusts of real or personal estate, heretofore executed and delivered to any person or persons, in trust, or for the use and benefit of any meeting of the religious society of Friends, and the trusts thereby created or declared, shall be valid; and the legal estates may be transmitted, and the trusts so created or declared may be continued and pursued, so long as may be required for the purposes of the trusts, by conveyances from the trustees named in such deeds to other trustees appointed by such meeting, and by conveyances from them to others appointed in like manner or otherwise, according to the directions of such meeting. 31 Barb., 563; 27 Barb., 387; 17 Barb., 106. Society of Friends, trusts may be created for use of. § 2. Trusts of real or personal estate for the benefit of any meeting of the religious society of Friends may be hereafter created for the use of such meeting according to the regulations and rules of discipline of said society; and the legal estate of any property, so held in trust, shall be vested in the trustees and in those to whom such property may be conveyed in trust, by the appointment of any such meeting, so long as may be required for the objects and purposes of such trusts, but nothing contained in this act shall be so construed as to impair or diminish the rights of any person, meeting, or association of persons claiming to be a meeting of the religious society of Friends, which such person, or meeting, or association claiming to be a meeting as aforesaid, had either in law or in equity to or in any real or personal estate held in trust for the use and benefit of any meeting of the said religious society, prior to the division which took place in said religious society at the yearly meeting held in the city of New York in the month of May, in the year of our Lord one thousand eight hundred and twenty-eight; and nothing in this act contained shall authorize any real or personal estate to be held in trust for any meeting of such society, the annual value or income of which shall exceed twenty thousand dollars. [Thus amended by L. 1880, ch. 337.] Death of trustees. § 3. In case of the death of all the trustees heretofore appointed, or who may be hereafter appointed by virtue of this act, any regular meeting of the religious society of Friends, for whose use and benefit said property was held in trust, may appoint a trustee or trustees in the place of such person or persons, and the person or persons thus appointed by such meeting shall succeed to and be invested with all the powers, rights and duties conferred by this act and the deed or declaration of trust upon the trustee or trustees. [Added by L. 1878, ch. 209.] Sale of property; deed, what to contain. § 4. The trustee or trustees, or survivor of any trustees, appointed pursuant to this act, may sell, convey and grant or demise any or all of the trust property described in said trust deed or declaration of trust to any person absolutely, or in trust for said meeting, whenever any meeting of said society shall by resolution direct the same to be sold and conveyed; any conveyance of real estate or property so held in trust by any meeting of the religious society of Friends, which may hereafter be made under and in pursuance of a resolution of the said meeting as provided herein, shall be as valid and effectual for the conveyance of the title of any real estate so held in trust, as if the heirs of any trustee who may have died prior to the passage of said resolution had joined in the execution of said conveyance or demise. Any instrument for the sale or demise of said property shall embody the said resolution of said meeting, relating to said sale or demise of said property, and shall be executed by the said trustee or trustees; and in said acknowledgment said trustee or trustees shall make an affidavit that the person or persons so executing said conveyance or demise are the trustee or trustees of said trust property, and that the said resolution embodied in said conveyance or demise was duly passed by said meeting; and the said affidavit thus made shall be prima facie evidence of the facts therein stated. [Added by L. 1878, ch. 209.] L. 1840, Chap. 318 – An act authorizing certain trusts. Property may be granted to certain literary institutions in trust. SECTION 1. Real and personal property may be granted and conveyed to any incorporated college or other literary incorporated institution in this state, to be held in trust for either of the following purposes: 1. To establish and maintain an observatory. 2. To found and maintain professorships and scholarships. 3. To provide and keep in repair a place for the burial of the dead; or 4. For any other specific purposes comprehended in the general objects authorized by their respective charters. The said trusts may be created, subject to such conditions and visitations as may be prescribed by the grantor or donor, and agreed to by said trustees, and all property which shall hereafter be granted to any incorporated college or other literary incorporated institution in trust for either of the aforesaid purposes, may be held by such college or institution upon such trusts, and subject to such conditions and visitations as may be prescribed and agreed to as aforesaid. 17 Barb., 105; 9 Barb., 99, 324; 4 Hun, 290; 3 Lans., 357; 43 N. Y., 438, 494; 45 Hun, 354. To corporations of cities or villages. § 2. Real and personal estate may be granted and conveyed to the corporation of any city or village of this state, to be held in trust for any purpose of education, or the diffusion of knowledge, or for the relief of distress, or for parks, gardens, or other ornamental grounds, or grounds for the purposes of military parades and exercise, or health and recreation, within or near such incorporated city or village, upon such conditions as may be prescribed by the grantor or donor, and agreed to by such corporation; and all real estate so granted or conveyed to such corporation, may be held by the same, subject to such conditions as may be prescribed and agreed to as aforesaid. 15 Barb., 147; 43 N. Y., 494; 41 Hun, 350. For nse of common schools. § 3. Real and personal estate may be granted to commissioners of common schools of any town, and to trustees of any school district, in trust for the benefit of the common schools of such town, or for the benefit of the schools of such district. Trusts how long to continue. § 4. The trusts authorized by this act may continue for such time as may be necessary to accomplish the purposes for which they may be created. 2 T. & C., 191. L. 1841, Chap. 261–An act in addition to the "Act authorizing certain trusts," passed May 14, 1840. Devise and bequest in trust to be as valid as a conveyance. SECTION 1. Devises and bequests of real and personal property in trust, for any of the purposes for which such trusts are authorized under the "act authorizing certain trusts," passed May 14, 1840, and to such trustees as are therein authorized, shall be valid in like manner as if such property had been granted and conveyed according to the provisions of the aforesaid act. 2T. & C., 191; 43 N. Y., 438, 494; 17 Barb., 106; 15 Barb., 147; 9 Barb., 99, 343; 6 T. & C., 351; 45 Hun, 354. L. 1846, Chap. 74-An act to amend the act, passed May, 1841, authorizing colleges and other incorporated literary institutions to hold real and personal estate in trust, so as to allow the same to accumulate for certain specific purposes. Income may be accumulated. SECTION 1. The income arising from any real or personal property granted or conveyed, devised or bequeathed in trust to any incorporated college or other incorporated literary institution, for any of the purposes specified in the "Act authorizing certain trusts," passed May 14th, 1840, or for the purpose of providing for the support of any teacher in a grammar school or institute, may be permitted to accumulate till the same shall amount to a sum sufficient, in the opinion of the regents of the university, to carry into effect either of the purposes aforesaid, designated in said trust. 3 Lans., 357. L. 1855, Chap. 432–An act in relation to the accumulation of the income of certain trust funds. Diminution of income, how suppplied. SECTION 1. If any of the principal of any trust fund actually received by any incorporated college, or other incorporated |